Apple to return some Mac production to U.S. in 2013

SAN FRANCISCO/NEW YORK (Reuters) – Apple Inc plans to move some production of Macintosh computers to the United States from China next year, Chief Executive Tim Cook said in remarks published on Thursday, in what could be a important test of the nascent comeback in U.S. electronics manufacturing.

Apple makes the majority of its products, from Macs to the iPhone and iPad, in China, the world’s factory floor for electronics. But like other U.S. corporations, it has come under fire for relying on low-cost Asian labor and contributing to the decline of the U.S. manufacturing sector.

Cook did not say which Macintosh products will be produced in the United States. But the effort is expected to go well beyond simple final assembly of devices, with Apple and unnamed partners building most or all of the components in the United States as well.

The company will spend more than $ 100 million on the U.S. manufacturing initiative, Cook said in an interview with Bloomberg Businessweek, published on Thursday.

“This doesn’t mean that Apple will do it ourselves, but we’ll be working with people and we’ll be investing our money,” Cook said.

He told NBC’s “Rock Center” program, in an interview to be aired later Thursday, that only one of the existing Mac product lines would be manufactured exclusively in the United States.

Apple declined to comment beyond the interview.

Apple’s decision, hailed by some analysts as an important first step even if it affected a tiny fraction of its overall output, was dismissed by others who saw it as an opportunistic public relations ploy with little effect on jobs.

Some Apple suppliers were struggling to assess its impact.

“At the end of the day, Apple knows moving production to the U.S. means lower profits for Apple,” said a senior executive at Taiwan’s Quanta Computer Inc who declined to be named because of the companies’ business relationship.

“If Apple is really serious about moving production to the U.S., they would need to invest 10 times or even 100 times of that amount. We see only a minor impact on Apple suppliers.”

Cross Research analyst Shannon Cross said it made sense for Apple to bring some manufacturing back to the United States, because some components were already being produced there.

Also, while cheaper labor costs have been a key factor in encouraging U.S. manufacturers to move production to China, wages and other costs have risen sharply – particularly in the main coastal manufacturing centers. Labor costs, moreover, account for only a tiny portion of overall expenses: the research firm iSupply says the total cost, including labor, for final manufacturing of an iPhone 5 is just $ 8.

Experts estimate that the total base cost of all components that go into the gadget, or bill of materials, comes to around $ 200.

Cross pointed to other potential benefits of U.S. manufacturing, including mitigating the risk of intellectual property theft.

Cook has said in the past that he would like to see more of the company’s products assembled back home, but declining U.S. manufacturing expertise made that difficult. Apple makes applications processors for the iPad and iPhone via Samsung Electronics in Austin, Texas, and sources glass for the same devices from a Corning facility in Kentucky.

IHS iSuppli, a research firm that tracks supply chains, said the company now outsources production of notebook personal computers to Taiwan’s Quanta Inc and Foxconn, which also makes the iPhone and iPad, and Pegatron Corp. Foxconn and Quanta have U.S. facilities.

“Apple’s move appears to be a symbolic effort to help improve its public image, which has been battered in recent years by reports of labor issues at its contract manufacturing partners in Asia,” Craig Stice, senior principal analyst for computer systems at His. “However, given Apple’s high profile in the market, the company’s ‘insourcing’ initiative could compel other companies to follow suit and transfer production to the United States over the next few years.”

Apple’s stock rose 1.6 percent on Thursday, a tepid bounceback from Wednesday’s 6.4 percent dive that was its biggest single-day loss in almost four years.

MAKING STRIDES

Analysts say the stock, which has fallen steadily since September, has come under pressure from investors worried about the rapidly intensifying competition from Google Inc’s Android products.

Samsung, in particular, has emerged as a formidable competitor, chipping away at Apple’s dominance in the tablet market and leading the smartphone pack in China, where the U.S. company’s smartphone market ranking fell to No. 6 in the third quarter from No. 4 in the previous three months, research outfit IDC estimates.

Samsung’s stock has climbed 8 percent since the end of September.

Apple’s domestic manufacturing effort will likely buy the brand some goodwill at home, where the debate about off-shoring has heated up as the economy sputters along. It has also come under fire for excessive working hours and dismal conditions at Foxconn’s plants in China, and critics have accused Apple of helping to create a high-stress environment for migrant workers.

Beyond the marketing boost, some analysts said Apple could blaze a trail should it prove that American manufacturing of electronics can be profitable.

“It seems to me like a nice time for Apple to do something,” Gartner analyst Carolina Milanesi said. “If it can be a profitable business, and others follow, then Apple has shown the way.”

Others were skeptical that Apple’s latest move was much more than a symbolic gesture.

“Such a strategy has been used by other companies in the past, which had no actual impact on their outsourcing,” said Li Qiang, director of New York-based China Labor Watch, in an emailed statement.

“The key question is how many jobs (percentage of the entire workforce) and what kind of jobs (production or administration) are to be moved back. I don’t think Apple is ready to relocate a large percentage of its production jobs back to U.S.”

Earlier this year, Google made waves when it announced it would build its Nexus Q home entertainment streaming device – deemed by many analysts to be an experimental product – in the heart of Silicon Valley. Google said it hoped to speed up innovation on the device and improve time-to-market.

Lenovo Group Ltd – China’s largest PC maker – said this year it will move a limited amount of computer manufacturing to North Carolina, to be closer to the market.

“Lenovo’s announcement appears to have flown under the radar,” said Jeffrey Wu, senior analyst for OEM research at IHS.

“Apple is a company that is always in the spotlight, and the company’s image sets the standard in the PC world. If Apple is doing it, will others follow?”

(Additional reporting by Faith Hung in TAIPEI, Lucy Hornby in BEIJING and Lee Chyen Yee in HONG KONG; Editing by Maureen Bavdek, Richard Chang and Ken Wills)

Tech News Headlines – Yahoo! News

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AP Interview: Jackson, cast discuss 'The Hobbit'

WELLINGTON, New Zealand (AP) — Many fans are eagerly anticipating a return to the fictional world of Middle-earth with next week's general release of the first movie in "The Hobbit" trilogy. Director Peter Jackson and the film's stars speak to The Associated Press about making "The Hobbit: An Unexpected Journey":

— Jackson on shooting at 48 frames per second instead of the standard 24: "We've seen the arrival of iPhones and iPads and now there's a generation of kids — the worry that I have is that they seem to think it's OK to wait for the film to come out on DVD or be available for download. And I don't want kids to see 'The Hobbit' on their iPads, really. Not for the first time. So as a filmmaker, I feel the responsibility to say, 'This is the technology we have now, and it's different ... How can we raise the bar? Why do we have to stick with 24 frames? ...'"

"The world has to move on and change. And I want to get people back into the cinema. I want to play my little tiny role in encouraging that beautiful, magical, mysterious experience of going into a dark room full of strangers, and being transported into a piece of escapism."

— Martin Freeman (Bilbo Baggins) on shooting some scenes without other actors around: "I must admit I found the green screen and all that easier than I thought I would. ... I found the technical aspect of it quite doable. Some of it's difficult, but it's quite enjoyable, actually. It taps into when I used to play 'war' as a 6-year-old. And the Germans were all imaginary. Because I was playing a British person. So yeah, I was on the right side. ..."

On marrying his performance to that of Ian Holm, who played an older Bilbo Baggins in the "Lord of the Rings" trilogy: "I knew I couldn't be a slave to it. Because as truly fantastic as Ian Holm is in everything, and certainly as Bilbo, I can't just go and do an impression of Ian Holm for a year and a half. Because it's my turn. But it was very useful for me to watch and listen to stuff he did, vocal ticks or physical ticks, that I can use but not feel hamstrung by."

— Hugo Weaving (Elrond) on the differences in tone to the "Rings" trilogy: "This one feels lighter, more buoyant, but it's got quite profoundly moving sequences in it, too ... I think it's very different in many ways, and yet it's absolutely the same filmmaker, and you are inhabiting the same world."

— Elijah Wood (Frodo) on returning to Middle-earth in a cameo role: "It was a gift to come back ... what they'd constructed was such a beautiful remembrance of the characters from the original trilogy."

— Cate Blanchett (Galadriel) on the toughest part of filming: "Trying to keep my children off the set."

— Richard Armitage (Thorin Oakenshield) on being a 6-foot-2 guy playing a dwarf: "It's amazing how quickly you get used to it. And also, we spent most of the shoot much bigger than a 6-foot-2 guy. I mean, I had lifts in my shoes, I was wider, I was taller, and bigger-haired. And I actually think that was quite an interesting place to be, because I do think dwarfs have big ideas about themselves ..."

— Andy Serkis (Gollum) on taking on the additional role of second-unit director: "There were only a couple of times where there were really, really black days where I went away thinking, 'This is it. I can't do it.' But on the whole, Pete (Jackson) was so brilliant at allowing me to set stuff up and then critiquing my work ... but at least I would have my stab at it."

On the film itself: "I think it's a great story. I think it's a beautifully crafted film with great heart. A rollicking adventure, and it feels to me like this really massive feast that everyone will enjoy eating."

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Images: Snow may have slowed NKorea launch prep

SEOUL, South Korea (AP) — New satellite images indicate that snow may have slowed North Korea's rocket launch preparations, but that Pyongyang could still be ready for liftoff starting Monday.

South Korean media reports this week quoted unnamed officials in Seoul as saying North Korea had mounted all three stages of the Unha rocket on the launch pad by Wednesday. But snow may have prevented Pyongyang from finishing its work by then, according to the GeoEye satellite images from Tuesday scrutinized by analysts for the websites 38 North and North Korea Tech and shared Friday with The Associated Press.

The analysis and images provide an unusually detailed public look at North Korea's cloaked preparations for a launch that the United Nations, Washington, Seoul and others say is a cover for a test of technology for a missile that could be used to target the United States.

The launch preparations have been magnified as an issue because of their timing: Both Japan and South Korea are gearing up to hold elections this month, and President Barack Obama will be inaugurated for his second term in office in January.

North Korea, for its part, says it has a right to pursue a peaceful space program and will launch a satellite into orbit sometime between Monday and Dec. 22. That launch window comes as North Korea marks the Dec. 17 death of leader Kim Jong Un's father, Kim Jong Il. North Korea is also celebrating the centennial of the birth of Kim Jong Un's grandfather, national founder Kim Il Sung.

Images from Dec. 1 showed no rocket at the launch pad, but by Tuesday North Koreans were seen working under a dark canvas, according to the analysis by 38 North, the website for the U.S.-Korea Institute at Johns Hopkins School of Advanced International Studies, and the North Korea Tech website, which collaborated with 38 North on the report.

The analysis contradicts South Korean media reports saying the rocket stages were set up by Wednesday, the websites said, because North Korea took longer — four days — to erect a similar rocket before a failed launch attempt in April.

Snowfall on Dec. 3 may have also temporarily stopped work at the site, according to the analysis written by Nick Hansen, a retired expert in imagery technology with more than 40 years of national intelligence experience.

North Korea has a long history of developing ballistic missiles, but in four attempts since 1998 has not successfully completed the launch of a three-stage rocket. It has also conducted two nuclear tests, intensifying worry over how its rocket technology could be used in the future, particularly if it masters how to attach a nuclear warhead to a missile.

A senior South Korean government official told foreign reporters in Seoul on Friday that North Korea has been making technical preparations for a nuclear test and could theoretically conduct one in a short period of time, but that it isn't clear when or if they will test. The official spoke on condition of anonymity, citing government rules.

Friday's analysis of the satellite images said North Korea can still be ready for liftoff Monday.

Based on its preparations for the April launch, which broke apart shortly after the rocket was fired, Pyongyang has to finish stacking its rocket stages only two to three days ahead of time — meaning workers could finish by Saturday and still be ready for a launch on Monday, the analysis said.

North Korea may have chosen a 12-day launch period, which is more than twice as long as the April period, because it was worried about possible weather complications, the analysis said.

"Pyongyang's rocket scientists can't be happy about the increased technical risks of a wintertime test, but certainly appear to have taken every precaution necessary in order to launch the rocket on time," said Joel Wit, a former U.S. State Department official and editor of 38 North.

A rocket can be launched during snowfall, but lightning, strong wind and freezing temperatures could stall a liftoff, said Lee Chang-jin, an aerospace professor at Seoul's Konkuk University.

North Korea's launch plan is meant to show the world its capability to build missiles, U.S. Pacific forces commander Adm. Samuel Locklear said Thursday. The United States has moved extra ships with ballistic missile defense capabilities toward the region, officials said.

The U.S., Japan and South Korea say they'll seek U.N. Security Council action if the launch goes ahead in defiance of existing resolutions. The council condemned April's launch and ordered seizure of assets of three North Korean state companies linked to financing, exporting and procuring weapons and missile technology.

On Friday, Japanese Prime Minister Yoshihiko Noda visited a Tokyo military facility to inspect Patriot Advanced Capability-3 missile interceptors being readied to intercept a North Korean rocket if it falls on Japanese territory.

The commander of American troops in Japan, Lt. Gen. Salvatore Angelella, said this week that his troops are closely monitoring activity in North Korea as it prepares for the launch.

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Associated Press writers Matthew Pennington in Washington and Sam Kim in Seoul contributed to this report.

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Online:

38 North: www.38north.org

North Korea Tech: www.northkoreatech.org

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Celebrations planned as Wash. legalizes marijuana

SEATTLE (AP) — Legal marijuana possession becomes a reality under Washington state law on Thursday, and some people planned to celebrate the new law by breaking it.

Voters in Washington and Colorado last month made those the first states to decriminalize and regulate the recreational use of marijuana. Washington's law takes effect Thursday and allows adults to have up to an ounce of pot — but it bans public use of marijuana, which is punishable by a fine, just like drinking in public.

Nevertheless, some people planned to gather at 12:01 a.m. PST Thursday to smoke in public beneath Seattle's Space Needle. Others planned a midnight party outside the Seattle headquarters of Hempfest, the 21-year-old festival that attracts tens of thousands of pot fans every summer.

"This is a big day because all our lives we've been living under the iron curtain of prohibition," said Hempfest director Vivian McPeak. "The whole world sees that prohibition just took a body blow."

In another sweeping change for Washington, Gov. Chris Gregoire on Wednesday signed into law a measure that legalizes same-sex marriage. The state joins several others that allow gay and lesbian couples to wed.

That law also takes effect Thursday, when gay and lesbian couples can start picking up their wedding certificates and licenses at county auditors' offices. Those offices in King County, the state's largest and home to Seattle, and Thurston County, home to the state capital of Olympia, planned to open the earliest, at 12:01 a.m. Thursday, to start issuing marriage licenses. Because the state has a three-day waiting period, the earliest that weddings can take place is Sunday.

The Seattle Police Department provided this public marijuana use enforcement guidance to its officers via email Wednesday night: "Until further notice, officers shall not take any enforcement action — other than to issue a verbal warning — for a violation of Initiative 502."

Thanks to a 2003 law, marijuana enforcement remains the department's lowest priority. Even before I-502 passed on Nov. 6, police rarely busted people at Hempfest, despite widespread pot use, and the city attorney here doesn't prosecute people for having small amounts of marijuana.

Officers will be advising people to take their weed inside, police spokesman Jonah Spangenthal-Lee wrote on the SPD Blotter. "The police department believes that, under state law, you may responsibly get baked, order some pizzas and enjoy a 'Lord of the Rings' marathon in the privacy of your own home, if you want to."

Washington's new law decriminalizes possession of up to an ounce for those over 21, but for now selling marijuana remains illegal. I-502 gives the state a year to come up with a system of state-licensed growers, processors and retail stores, with the marijuana taxed 25 percent at each stage. Analysts have estimated that a legal pot market could bring Washington hundreds of millions of dollars a year in new tax revenue for schools, health care and basic government functions.

But marijuana remains illegal under federal law. That means federal agents can still arrest people for it, and it's banned from federal properties, including military bases and national parks.

The Justice Department has not said whether it will sue to try to block the regulatory schemes in Washington and Colorado from taking effect.

"The department's responsibility to enforce the Controlled Substances Act remains unchanged," said a statement issued Wednesday by the Seattle U.S. attorney's office. "Neither states nor the executive branch can nullify a statute passed by Congress" — a non-issue, since the measures passed in Washington and Colorado don't "nullify" federal law, which federal agents remain free to enforce.

The legal question is whether the establishment of a regulated marijuana market would "frustrate the purpose" of the federal pot prohibition, and many constitutional law scholars say it very likely would.

That leaves the political question of whether the administration wants to try to block the regulatory system, even though it would remain legal to possess up to an ounce of marijuana.

Colorado's measure, as far as decriminalizing possession goes, is set to take effect by Jan. 5. That state's regulatory scheme is due to be up and running by October 2013.

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Johnson can be reached at https://twitter.com/GeneAPseattle

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Both sides hint at renewed 'fiscal cliff' talks

WASHINGTON (Reuters) - With little to show after a month of posturing, the White House and Republicans in Congress dropped hints on Thursday that they had resumed low-level private talks on breaking the stalemate over the "fiscal cliff" but refused to divulge details.

A day after a phone conversation between President Barack Obama and John Boehner, the Republican speaker of the House of Representatives, appeared to kick-start communications, both sides used similar language to describe the state of negotiations but imposed a media blackout on developments.

"Lines of communication remain open," White House spokesman Jay Carney told reporters when pressed on whether staff talks were taking place to avoid the steep tax hikes and budget cuts set for the first of next year unless the parties agree on a way to stop them.

Asked the same question, Boehner spokesman Michael Steel also said "lines of communication are open."

The acknowledgement, even without signs of anything approaching a breakthrough, passed for encouraging news after a week of public maneuvering on the fiscal cliff by both sides to gain the maximum political and public relations advantage.

Republicans have worried publicly and privately that they are losing the war of appearances in the battle over the cliff.

On Thursday, another poll showed Republicans may have reason to worry about public perception. A Quinnipiac University survey found respondents trust Obama and Democrats more than Republicans on the cliff talks by a wide margin - 53 percent to 36 percent.

In both public statements and private encounters, Obama has tried to encourage Republicans wavering from the position of the party leadership.

Republican Representative Tom Cole, who last week broke ranks with his party and agreed to accept higher tax rates on the richest Americans, said Obama took him aside at a White House Christmas party on Monday and joked about the criticism Cole had received from Republicans.

"The president pulled me over and he said, 'Cole, come closer, I want to see the bruises,'" Cole told Reuters. "He said, 'Seriously, I will go further on this thing than you guys think. I know we can get something done.'"

While other Republicans have questioned Obama's commitment, Cole said, "I take him at his word," adding: "The best is to get to that discussion as quickly as we can."

'SOLVABLE PROBLEM'

Obama, meanwhile, played to his strengths with the latest in a series of the sort of public events he has used against Republicans in the fiscal cliff fight: a visit with a family in the Virginia suburbs of Washington to illustrate how Republican tax proposals would hurt the middle class.

"The message that I think we all want to send to members of Congress is: this is a solvable problem," Obama said while visiting the home of a couple in Falls Church, Virginia. "We are in the midst of the Christmas season and I think the American people are counting on this getting solved."

Neither side in the showdown would characterize Wednesday's conversation between Boehner and Obama or suggest it opened up new area of compromise.

Obama and Democrats in Congress want the tax cuts set to expire at the end of the year to be extended for taxpayers with incomes below $250,000 a year but not for the wealthiest 2 percent of Americans.

In exchange, the president has said he is willing to consider significant spending cuts wanted by Republicans to "entitlement" programs such as Medicare, the government health insurance plan for seniors.

Republicans have held out for an extension of all the tax cuts, but they have become increasingly divided about whether they can prevail in the face of Obama's firm stance and Republican control of only the House but not the U.S. Senate.

TANGLING OVER DEBT LIMIT

The debt ceiling issue - the same one that provoked a showdown in 2011 that led to a downgrading of the U.S. credit rating - has become a centerpiece of the fiscal cliff debate, thanks in part to Obama's insistence that Congress give him enhanced power to increase the debt limit, which needs to be raised again in the next few months.

"It ought to be done without delay and without drama," Carney, the White House spokesman, said of raising the debt ceiling.

That issue produced a largely partisan procedural scuffle on Thursday in the Senate when Republicans tried to provoke a vote on giving Obama the power to raise the debt ceiling on his own.

Senate Republican leader Mitch McConnell, who had argued that not even Democrats would support giving Obama greater flexibility, tried to prove it by pushing for a vote.

When Senate Democratic leader Harry Reid went ahead and scheduled it, confident he had enough support to win on a straight majority vote, the Republicans backed down, with McConnell demanding that 60 votes be required for passage, more than the Democrats can muster.

No new vote was scheduled. While the measure could come up again, it was dead for the moment.

"Senator McConnell took obstruction to new heights by filibustering his own bill," Reid said in a statement.

Democratic Senator Charles Schumer of New York told reporters that Republicans were losing the argument on raising top tax rates and "are trying to pivot away to other parts of the fiscal cliff in a desperate attempt to assert leverage and change the subject."

The exchange may be a taste of things to come as Congress moves toward the fiscal cliff deadline.

Economists have warned a plunge over the cliff could drive the economy back into a recession. Mark Zandi, chief economist at Moody's Analytics, told the congressional Joint Economic Committee that failure to strike a deal could have serious economic consequences relatively quickly.

"By mid-February you would be doing a lot of damage," Zandi said.

(Additional reporting by Margaret Chadbourn, Rachelle Younglai, David Lawder, Jason Lange; Writing by John Whitesides; Editing by Fred Barbash and Eric Beech)

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Apple’s shares swallow biggest loss in four years

NEW YORK/SAN FRANCISCO (Reuters) – Apple Inc shares tumbled more than 6 percent on Wednesday, chalking up their biggest single-day loss in four years as fears grow about intensifying competition in the mobile device market.

Investors and analysts blamed the sell-off on a mix of factors, including a forecast by an influential research firm that the iPad maker is continuing to cede ground to rival Google Inc’s Android gadgets, and unconfirmed reports that at least one major stock-clearing house was raising margin requirements on Apple stock trades.

Analysts also cited fears about a hike in the capital gains tax in 2013 in the event that ongoing Washington fiscal negotiations fail, as well as news that Nokia had beat Apple to the punch by striking a deal to sell its flagship Lumia through China Mobile, that country’s largest wireless carrier.

Wednesday’s drop rounded off a bleak 10 weeks for the most valuable U.S. company.

The stock was one of the day’s biggest percentage losers on the S&P 500, shedding $ 35 billion of market value as more than 37 million shares changed hands — blowing past the company’s average daily volume over 50 days of 21 million.

Apple‘s shares, once among the most desirable of portfolio holdings, have headed steadily lower since September on growing uncertainty about the company’s ability to fend off unprecedented competition. This year saw a surge in sales of Amazon.com Inc’s cheaper Kindle Fire and Microsoft Corp’s first foray into the tablet market with its Surface.

Meanwhile, Samsung Electronics continues to chip away at the iPad‘s dominance with its Galaxy line.

The assault on Apple‘s consumer-electronics home turf presents a stiff challenge for CEO Tim Cook, who was elevated shortly before the death of Silicon Valley legend Steve Jobs and is now charged with keeping the world’s largest technology company humming.

“This is not going to be a short-term trend. This is a management test, of how well they can perform without Steve Jobs,” said Brian Battle, director of trading at Performance Trust Capital Partners in Chicago. Referring to Apple‘s new iPad mini, which is only a smaller version of the existing iPad, Battle said the company needs “another home run” for shares to return to levels around $ 700.

“They need another new product that hits it out of the park. Without that, they could get a gradual grind-down in confidence,” he said.

On Wednesday, research firm International Data Corp said Apple most likely shed market share in the tablet computer space in 2012. Its worldwide tablet market share will slip to 53.8 percent in 2012 from 56.3 percent in 2011, while Android products would increase their share to 42.7 percent from 39.8 percent, IDC said.

Concerns that tax rates on dividends and capital gains may rise next year were also cited as contributing to the Apple sell-off.

The stock’s massive market value meant Apple was almost single-handedly responsible for Wednesday’s 1.1 percent decline in the Nasdaq 100 Index.

Apple is still up 33 percent this year, but is down nearly 24 percent from its record high of $ 705.07, hit on September 21. The stock slid more than 6.4 percent on Wednesday to close at $ 538.7923.

BEFUDDLING SLIDE

Some analysts were perplexed at the fall from favor in Apple stock, which has been a staple in almost all growth portfolios. The company is expected to deliver reliably high revenue and earnings expansion for years to come, and one in two tablets sold globally remains an iPad.

It is now gearing up for the introduction of its latest iPhone 5 and iPad mini in international markets. It will begin selling the iPhone 5 in 50 countries in December, including China and South Korea.

“Apple stock is significantly more volatile than its earnings and innovation stream,” said Daniel Ernst, analyst with Hudson Square Research. “And yet the wind blows slightly from the south instead of the east one particular morning, and the stock is down 6 percent.”

“It makes no sense. There are lines around the block for their products all around the world,” he added. “No other company has that.”

Separately, Nokia said it will partner with China Mobile, in a sales deal that will give the Finnish company an opportunity to win back Chinese market share from Apple‘s iPhone.

But some analysts continue to believe the dominant carrier in the world’s largest cellular market will eventually embrace the iPhone as well.

“China Mobile already carries multiple smartphones from multiple vendors. We continue to expect China Mobile to add the iPhone in the back half of 2013,” Piper Jaffray’s Gene Munster wrote in a research note.

While lines for the latest iPad model appeared lighter than usual when it hit stores in November, Apple said at the time that demand was so strong that it “practically sold out of iPad minis.” It sold 3 million of the new iPads — including the full-sized version — in the first three days on the market.

Some analysts suggested that investors also sold shares of Apple amid uncertainty over ongoing fiscal negotiations in Washington. If no agreement is reached on the issue, higher tax rates on dividends and capital gains are possible in 2013.

Investors who had hoped for a special dividend this year, as many other corporations have announced on expectations of higher tax rates next year, may be disappointed as time is running out.

“If you were expecting a special dividend by year end, that’s less likely to happen because its December 5,” said Colin Gillis, an analyst with BGC Partners.

The fear of higher taxes on capital gains also has prompted some investors to lock in profits now, particularly on a stock like Apple, which has posted gains of at least 25 percent for four consecutive years.

“Depending on what happens with the (U.S. fiscal negotiations), rates could rise next year or they could stay the same,” said Battle, of Performance Trust Capital. “They will not be lower, so if you’re an investor who has seen gains in Apple, it is better to take those gains this year rather than next.”

Tax selling “can take a life of its own,” said Tim Ghriskey, chief investment officer of Solaris Group in Bedford Hills, New York.

“Some taxable investors take the gains, that creates some negative momentum, institutional investors are heavily weighted the stock and reduce exposure.”

Some market participants also cited reports by media including CNBC, which Reuters could not confirm, that margin requirements on the trading of Apple stock had been raised by at least one clearing firm.

(Additional reporting by Charles Mikolajczak in New York and Doris Frankel in Chicago; Editing by Bernadette Baum, Andrew Hay, Leslie Adler and Ken Wills)

Gadgets News Headlines – Yahoo! News

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Grammys spread the love with 6 top nominees

NASHVILLE, Tenn. (AP) — The Grammy Awards celebrated the diversity of music as six different artists tied for lead nominee — Kanye West, Jay-Z, Frank Ocean, Dan Auerbach of The Black Keys, Mumford & Sons and fun.

Auerbach received five nominations as a member of the Keys and also is up for producer of the year, earning a spot with the others at the top of the list as the Grammy's primetime television special came to his hometown Wednesday night.

"We're speechless," Auerbach said in a statement to The Associated Press from Germany, where he's on tour with drummer Patrick Carney.

The rockers little resemble any of the other acts at the top of the list. The nominations for Jay-Z and West, two of hip-hop's most important figures, is a familiar refrain. Each has routinely been at or near the top of the nominations list for the last several years.

Indie pop band fun., a featured performer during the show, aired live from Nashville's Bridgestone Arena on CBS, rode the success of its anthemic hit "We Are Young" featuring Janelle Monae to sweep of the major categories, earning nods for best new artist, song and record for "We Are Young" and album of the year for "Some Nights." The band's producer Jeff Bhasker is up for four nominations.

"When you call your band fun. with a period at the end of the sentence, you set a very high standard for yourself and for fun itself," Taylor Swift, the concert's co-host, said in introducing them. "Fortunately this band from New York has lived up to the name in the best possible way."

R&B singer Ocean, whose mother was in attendance, made a bold social statement earlier this year when he noted he had a same-sex relationship in the liner notes of his new album "channel ORANGE," and The Recording Academy rewarded him with the nominations for best new artist, record for "Thinkin Bout You" and album of the year.

And British folk-rock band Mumford & Sons, which made an auspicious debut in front of an international audience during the 2011 Grammys, is up for album of the year for "Babel," one of 2012's best-selling releases.

Miguel, who helped Ocean shake up the R&B world this year, and jazz great Chick Corea join the Keys with five nominations apiece. Nas and recording engineer Bob Ludwig join Bhasker at four apiece.

There were no major snubs. Most of 2012's inescapable hits are represented in some way — Gotye's "Somebody That I Used To Know" is up for record of the year and Carly Rae Jepsen's "Call Me Maybe" garnered a song of the year nod. Drake, Rihanna and Nashville residents Swift, Kelly Clarkson, Jack White and best new artist nominee Hunter Hayes were among 16 nominees with three nods.

In many ways the nominations reflect a singles-driven year when no album rose to the level of acclaim as Adele's "21" or West's "My Beautiful Dark Twisted Fantasy," which dominated the Grammys last February.

The best new artist category is a great example of this year's diversity. From the minimalist R&B of Ocean, the pop-influenced sounds of fun. and Hayes, the soulful rock of Alabama Shakes and the Americana swing of The Lumineers, there's little resemblance between the acts.

"I think people listen to a lot of types of music and Spotify has proven that, and iPod has proven that," Lumineers member Wes Schultz said. "... Every person in that audience tonight, I saw them freaking out about various artists that have no relationship to each other."

Alabama Shakes drummer Steve Johnson noted the diversity in the category after the show, then made a surprising statement: "If I were on the other side of the fence, I'd vote Frank Ocean personally."

The members of fun. were "dorking it up" as they learned about their nominations, lead singer Nate Reuss said, and were especially excited to show up in the album of the year category, which also included Ocean's major label debut, the Keys' "El Camino," Mumford's "Babel" and White's "Blunderbuss."

"It's been an incredible year in music," guitarist Jack Antonoff said. "It feels like alternative music is back, looking at album of the year, especially those nominations. We couldn't be more proud to be in there. ... I think when we were sitting in our chairs out there, when we saw Jack White up there, that's when we really pinched ourselves. We felt so honored to be in the same category."

Miguel also had his mind on the forgotten art form of the album. Nominated in the major category of song of the year for "Adorn," he said in a phone interview from New York that he was most excited about another category — urban contemporary album.

"Of all of the categories to be nominated for, that is the one that means the most to me just because I just, I miss great albums. That's a huge compliment to say that your entire body of work was the best of the year," he said. "I don't know. That's the one that means the most to me. I'm really hoping maybe, just maybe."

He'll find out when the 55th annual Grammy Awards take place Feb. 10 in Los Angeles. Trophies will be handed out in 81 categories.

The 5-year-old nominations show was held outside Los Angeles for the first time and showcased Music City for its growing role in the music industry. The Bridgestone Arena marked the largest venue the show has been held in and it may have been a dress rehearsal for a chance to host the main awards show sometime in the future.

LL Cool J returned as host, sharing duties with Swift, whose hit song "We Are Never Ever Getting Back Together" earned a nod in the jam-packed record of the year category. She was joined by fun., Gotye, Clarkson's "Stronger (What Doesn't Kill You)," The Black Keys' "Lonely Boy" and Ocean's "Thinkin Bout You."

Song of the year nominees were Ed Sheeran's "The A Team," Miguel's "Adorn," Jepsen's "Call Me Maybe," Clarkson's "Stronger (What Doesn't Kill You)" and fun.'s "We Are Young."

Swift and LL Cool J opened the show by putting together a beat-box version of Swift's hit "Mean." Hayes displayed his versatility while announcing the best pop vocal album by singing snippets of each star's hit song. Maroon 5 played headliner, singing three songs mid-show before finishing off the live broadcast. The group stuck around for an hourlong performance afterward for the crowd in attendance.

Assisted by Monae, fun. reimagined "We Are Young" with orchestral strings as the crowd sang along, Ne-Yo, in wine-colored bowler, kicked things up with a cadre of dancers on his new club-infused song "Let Me Love You." And the show tipped its hat to Nashville with a salute to Johnny Cash by Dierks Bentley and The Band Perry.

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AP Music Writer Mesfin Fekadu contributed to this report from New York.

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Online:

http://grammy.com

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Follow AP Music Writer Chris Talbott: http://twitter.com/Chris_Talbott.

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US: Situation 'dangerous' ahead of NKorea launch

TOKYO (AP) — The commander of American troops in Japan said Thursday that the situation ahead of North Korea's planned launch of a long-range rocket this month is "very dangerous."

Lt. Gen. Salvatore Angelella said U.S. troops in Japan are closely monitoring activity in North Korea as it prepares for the launch. He said the United States sees the launch as a violation of U.N. restrictions in place to keep North Korea from developing its long-range missile capabilities.

"This is a very dangerous situation, and we do not support those actions by North Korea. ... We are monitoring the situation closely," Angelella, who commands the roughly 50,000 U.S. troops in Japan, said at a news conference in Tokyo.

He said American troops are working closely with the Japanese to protect the country's citizens and territory, but declined to give details. Two U.S. officials said Wednesday that the Navy had begun moving several ships into the western Pacific.

North Korea has announced it will launch the rocket between Dec. 10 and 22. It attempted a similar launch in April, but it failed shortly after liftoff.

Also on Thursday, a Japanese man who served as a chef to the North Korean leadership and visited the country earlier this year said the planned rocket launch was meant to honor the late leader Kim Jong Il.

Kenji Fujimoto, Kim's personal sushi chef from 1988-2001, said he believes the late leader's son and successor, Kim Jong Un, was backing the launch to show respect for his father.

"I don't think that Kim Jong Un is taking a very aggressive role in pushing for this launch, but he might want to commemorate his father's passing," Fujimoto said.

He said that despite its apparent determination to defy international appeals against the rocket launch, North Korea wants better relations with the West and has developed its rocket program solely as a deterrent.

Fujimoto settled in Japan after leaving the North Korean capital, Pyongyang, and has written several memoirs. He visited North Korea for several weeks last summer, saying he was fulfilling a promise he had made to the younger Kim before he left.

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Study could spur wider use of prenatal gene tests

A new study sets the stage for wider use of gene testing in early pregnancy. Scanning the genes of a fetus reveals far more about potential health risks than current prenatal testing does, say researchers who compared both methods in thousands of pregnancies nationwide.

A surprisingly high number — 6 percent — of certain fetuses declared normal by conventional testing were found to have genetic abnormalities by gene scans, the study found. The gene flaws can cause anything from minor defects such as a club foot to more serious ones such as mental retardation, heart problems and fatal diseases.

"This isn't done just so people can terminate pregnancies," because many choose to continue them even if a problem is found, said Dr. Ronald Wapner, reproductive genetics chief at Columbia University Medical Center in New York. "We're better able to give lots and lots of women more information about what's causing the problem and what the prognosis is and what special care their child might need."

He led the federally funded study, published in Thursday's New England Journal of Medicine.

A second study in the journal found that gene testing could reveal the cause of most stillbirths, many of which remain a mystery now. That gives key information to couples agonizing over whether to try again.

The prenatal study of 4,400 women has long been awaited in the field, and could make gene testing a standard of care in cases where initial screening with an ultrasound exam suggests a structural defect in how the baby is developing, said Dr. Susan Klugman, director of reproductive genetics at New York's Montefiore Medical Center, which enrolled 300 women into the study.

"We can never guarantee the perfect baby but if they want everything done, this is a test that can tell a lot more," she said.

Many pregnant women are offered screening with an ultrasound exam or a blood test that can flag some common abnormalities such as Down syndrome, but these are not conclusive.

The next step is diagnostic testing on cells from the fetus obtained through amniocentesis, which is like a needle biopsy through the belly, or chorionic villus sampling, which snips a bit of the placenta. Doctors look at the sample under a microscope for breaks or extra copies of chromosomes that cause a dozen or so abnormalities.

The new study compared this eyeball method to scanning with gene chips that can spot hundreds of abnormalities and far smaller defects than what can be seen with a microscope. This costs $1,200 to $1,800 versus $600 to $1,000 for the visual exam.

In the study, both methods were used on fetal samples from 4,400 women around the country. Half of the moms were at higher risk because they were over 35. One-fifth had screening tests suggesting Down syndrome. One-fourth had ultrasounds suggesting structural abnormalities. Others sought screening for other reasons.

"Some did it for anxiety — they just wanted more information about their child," Wapner said.

Of women whose ultrasounds showed a possible structural defect but whose fetuses were called normal by the visual chromosome exam, gene testing found problems in 6 percent — one out of 17.

"That's a lot. That's huge," Klugman said.

Gene tests also found abnormalities in nearly 2 percent of cases where the mom was older or ultrasounds suggested a problem other than a structural defect.

Dr. Lorraine Dugoff, a University of Pennsylvania high-risk pregnancy specialist, wrote in an editorial in the journal that gene testing should become the standard of care when a structural problem is suggested by ultrasound. But its value may be incremental in other cases and offset by the 1.5 percent of cases where a gene abnormality of unknown significance is found.

In those cases, "a lot of couples might not be happy that they ordered that test" because it can't give a clear answer, she said.

Ana Zeletz, a former pediatric nurse from Hoboken, N.J., had one of those results during the study. An ultrasound suggested possible Down syndrome; gene testing ruled that out but showed an abnormality that could indicate kidney problems — or nothing.

"They give you this list of all the things that could possibly be wrong," Zeletz said. Her daughter, Jillian, now 2, had some urinary and kidney abnormalities that seem to have resolved, and has low muscle tone that caused her to start walking later than usual.

"I am very glad about it," she said of the testing, because she knows to watch her daughter for possible complications like gout. Without the testing, "we wouldn't know anything, we wouldn't know to watch for things that might come up," she said.

The other study involved 532 stillbirths — deaths of a fetus in the womb before delivery. Gene testing revealed the cause in 87 percent of cases versus 70 percent of cases analyzed by the visual chromosome inspection method. It also gave more information on specific genetic abnormalities that couples could use to estimate the odds that future pregnancies would bring those risks.

The study was led by Dr. Uma Reddy of the National Institute of Child Health and Human Development.

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Online:

Medical journal: http://www.nejm.org

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Marilynn Marchione can be followed at http://twitter.com/MMarchioneAP

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Syria loads chemical weapons, waits for green light

U.S. Secretary of State Hillary Clinton attends the "Friends of Syria" confernence in Paris. (AP)U.S. officials say the Syrian military has loaded active chemical weapons into bombs and is awaiting a final order from embattled President Bashar Assad to use the deadly weapons against its own people.

NBC News reports that on Wednesday the Syrian military loaded sarin gas into aerial bombs that could be deployed from dozens of aircraft.

The last large-scale use of sarin was in 1988, when former Iraqi President Saddam Hussein's forces killed 5,000 Kurds in a single attack.

However, U.S. officials told NBC that the sarin bombs had not yet been loaded onto planes but added if Assad gives the final order, "there's little the outside world can do to stop it."

The Syrian government has previously insisted that it would not use chemical weapons against its own people.

For months, the Obama administration has described the Assad regime as being on the verge of collapse. If the Syrian government were to be toppled from outside forces or from within, it would be the first nation possessing weapons of mass destruction to do so.

U.S. Secretary of State Hillary Clinton has as recently as last week warned of the possibility that Assad could use chemical weapons against his own people. After meeting other NATO foreign ministers in Brussels last week, Clinton told the gathering, "Our concerns are that an increasingly desperate Assad regime might turn to chemical weapons, or might lose control of them to one of the many groups that are now operating within Syria."

"We have sent an unmistakable message that this would cross a red line and those responsible would be held to account," she said.

At the end of the meeting, NATO Secretary General Anders Fogh Rasmussen backed up Clinton's threat, declaring that the international community could take military action against Assad and his forces.

"The possible use of chemical weapons would be completely unacceptable for the whole international community and if anybody resorts to these terrible weapons I would expect an immediate reaction from the international community," Rasmussen told reporters.

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